From 1996 to today, microcredit organizations (MCOs) through its work gave and continue to give significant contribution to overall social and economic recovery of BiH, poverty reduction and increase in employment rate. Majority of microfinance organizations, members of Association of Microfinance Institutions in Bosnia and Herzegovina (AMFI), that have 98% of the market participation in BiH, recorded a positive finance results during the first nine months of 2012.
The amount of BAM 4.481.000.000 or 75% of the total micro credits amount was disbursed for business activities. Micro credits are promoting self-employment and employment.
According to the data of the Agency for Statistics there are 530 000 unemployed persons in Bosnia and Herzegovina, and they are not in a position to obtain a loan from a commercial bank, therefore, micro-credits are the only option available to unemployed persons to bridge the financial gaps or to start their own business and generate adequate resources to cover the expenses for their basic needs.
There are 25 Microcredit Organizations (MCOs) operating on the BiH market, and the advantage of the micro-lending is that the MCOs are providing access to suitable loans to all legal entities in the domain of micro and small business that do not posses any fixed assets as well as to all companies even when they do not have adequate security instruments for a loan.
Sarajevo, 27/03/2012 – The analysis of the business operations of the members of the Association of Microfinance Organizations in Bosnia and Herzegovina illustrates that this sector continues to show positive results of the recovery following the crisis that impacted even the most developed financial markets.
Sarajevo, 27/03/2012 - Association of Microfinance Organizations in Bosnia and Herzegovina in partnership with the IFC has launched the campaign on protection of the clients in the microfinance sector.